How bonds work

Bonds may not be widely understood but they can be helpful for managing investments. Find out how they work.

Bonds are something of a mystery to many people – perhaps because they lack the high profile of other investments, such as shares and cash deposits. But bonds can play an important role in managing investments.

Corporate and government bonds
In this video, ING senior economist Ian Bright explains the differences between government and corporate bonds. He details the risk profiles of bonds and how bonds can help with diversification. “They can be a half way house between the risk of shares and property and the safety of cash,” says Bright.